Fundstrat sees S&P 500 reaching 8,000 in August on earnings and tech momentum

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Fundstrat S&P 500 8,000 forecast

Highlights

Fundstrat's Tom Lee forecasts the S&P 500 could reach 7,900–8,000 in August, representing a 2.3%–3.6% upside from the 7,723.55 close.
Lee cites consolidation over the past 8–10 weeks, accelerating earnings momentum, and the Nasdaq-100 trading above key moving averages as technical drivers.
Technology sector leads August gains with a 5.8% rise, while semiconductors outperform—SMH up 5.4%, DRAM up 6.7%—as Lee remains bullish on both segments.

August target backed by technical and earnings signals

As reported by CNBC, Lee says in a video to clients released late Wednesday that the S&P 500 could rise another 2.3% to 3.6% from Wednesday’s close of 7,723.55 and reach 7,900 to 8,000 this month.

Lee argues the market has been consolidating for the past eight to 10 weeks, creating the conditions for a stronger breakout. He also says the Nasdaq-100 is trading above its 20-day, 50-day and 200-day moving averages, which in his view points to a positive technical backdrop.

He adds that earnings momentum is strengthening beyond better-than-expected second-quarter results and is also lifting estimates for 2027. In his words, earnings are accelerating.

Technology leadership shapes market outlook

Stocks have already posted a strong start to August, with the S&P 500 up 3.1% in the month so far. The advance is supported by robust quarterly profits and hopes for an agreement that could reopen the Strait of Hormuz and ease oil traffic through the Persian Gulf.

Technology shares lead the latest move higher, with the sector up 5.8% in August. Within the group, semiconductor-related names outperform, with the VanEck Semiconductor ETF, SMH, rising 5.4% and the Roundhill Memory ETF, DRAM, gaining 6.7%.

Lee says investors still need diversification, but he remains bullish on semiconductors, DRAM and memory despite their recent correction. He says the rebound is likely to be led by the Magnificent Seven, software and ethereum.

Our earlier coverage of the Sandisk and Western Digital selloff noted that data-storage and chip shares slid sharply in premarket trading even after both companies issued revenue guidance above consensus, as AI-linked expectations remained extremely high. We also pointed out that the weakness spilled into other semiconductor names, underscoring how sensitive investors have become to any sign that growth may be normalizing after a strong rally.

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